Is a members' voluntary liquidation (MVL) right for my business?
A members’ voluntary liquidation is a process carried out by shareholders of a solvent company. In this process, the shareholders will appoint a liquidator under special resolution to realise the assets of the business, in order to distribute the proceeds to the company’s members.
MVL’s are used for a variety of reasons:
- Tax planning
- To resolve disputes amongst a company’s shareholders
- To reorganise a company’s activities into a more efficient structure (often using a process called a Section 110 IA 86 arrangement)
- To release capital to the shareholders of a company